Consumers Should Be Ready For Further Price Increases, Nestle's Chief Executive Says

Author: Vandana Singh | October 19, 2022 07:22am

Nestle SA's (OTC:NSRGY) (OTC:NSRGF) Chief Executive Officer Mark Schneider said inflation will remain an issue in 2023.
"This is a situation no one wished for," CEO Mark Schneider said in an interview with Bloomberg Television.
"We are seeing huge upward pressure on energy, some agricultural commodities, and transportation costs."
Consumers have been willing to absorb higher costs despite inflation that's squeezed household budgets and lifted manufacturers' raw material costs. The goods sold eased by 0.2% in Q3 as Nestle raised prices by 9.5%.
The CEO said Nestle hadn't passed all its higher input costs onto consumers. Higher energy prices also risk demand for Nestle as consumers switch to cheaper products.
Schneider said wages would add to cost pressure next year.
The Swiss food conglomerate reported sales of CHF 69.1 billion for nine months ending September. Organic growth reached 8.5%. Pricing was 7.5%, reflecting significant cost inflation.
The company expects full-year revenue growth of about 8% and an operating margin of 17%, which would be the second consecutive annual decline.
Nestle plans to buy Seattle's Best Coffee brand from Starbucks Corporation (NASDAQ:SBUX) for an undisclosed price.